The Implications of Intertemporal Consistency for Patent Licensing
A patent provides its holder the monopolist's right to sell licenses that allow the use of new knowledge or an innovation during a certain period of time. The patent holder therefore faces the typical commitment problem of the durable-goods monopolist. This intertemporal consistency problem appears when the monopolist does not have the ability to commit to a future schedule of license sales.
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|Date of creation:||1997|
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